Premium
Targeting Welfare: A Comment *
Author(s) -
WHITEFORD PETER
Publication year - 1997
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1997.tb00978.x
Subject(s) - generosity , social security , poverty , public economics , economics , welfare , welfare system , basic income , economic growth , political science , law , market economy
Mitchell, Harding and Gruen (1994) survey the redistributive impact of Australia's targeted social security system using Luxembourg Income Study data. They argue that the Australian system has the highest target efficiency among ten countries, but the lowest benefit generosity (after taking account of tax clawbacks), implying that generosity is greater in universal or contributory systems. This comment identifies methodological problems with the accounting framework used by Mitchell, Harding and Gruen, although also arguing that the Australian targeted income support system is likely to be more efficient at reducing poverty than social insurance systems. An alternative methodological approach is outlined.